Page 6 - The Compass

Barring a few macro risks, oil marketing firms seem to be in a sweet spot

China today has the largest refining capacity globally, with its refining capacity to reach 21 million barrels per day (mb/d) in 2025

Paint companies hope for revival strokes amid demand surge after lull

Paint makers posted marginal Q1 growth after four quarters of decline, with demand aided by softer raw material prices and early festive season, though margins remain under pressure

Higher volumes, margins potential rerating triggers for FMCG companies

FMCG companies are seeing structural growth since categories like shampoos and detergents are under-penetrated

Volume recovery, attractive valuation positive triggers for Petronet LNG

Adjusted PAT, excluding the impairment adjusted for tax, was ₹945 crore in Q1FY26. Reported PAT of ₹842 crore includes the impairment

Cement sector prospects on the mend, but valuations may be hurdle

Cement demand is driven by government projects in infrastructure and housing, a rural rebound, and industrial capex

Outlook remains positive for private general insurers despite modest growth

Despite modest growth in the non-life insurance sector in July 2025, key segments like motor and fire insurance showed strength, while health faced challenges.

Margin recovery crucial for Swiggy re-rating despite strong Q1 growth

Swiggy posted 54% Y-o-Y revenue growth in Q1 FY26 but losses widened; analysts say margin recovery will be key for further stock re-rating despite strong GOV momentum

Timely execution of new capacities essential for gains in NTPC stock

The power utility is aiming to add 26-27GW of thermal coal capacity, and 60GW renewable energy (RE) capacity by FY32 mainly through listed subsidiary

Jio's data tariff move strong signal for Bharti Airtel, Vodafone Idea

Jio's increase in entry-level data tariffs could push its FY26 revenue up by 4-5%. This move is expected to trigger similar tariff hikes by Airtel and Vodafone Idea, benefitting the entire sector.

Large capex a key concern for BPCL amid crude oil price uncertainty

BPCL's Q1FY26 profit fell short of expectations as refining margins weakened, though marketing remained robust Analysts caution that rising capex could strain balance sheet

Macro headwinds likely to keep a cautious tab on Info Edge stock

Management says a large part of the current marketing spends is for brand building, which may be cut sharply if needed

Lower crude oil prices point to further downsides for ONGC stock

For ONGC Videsh or OVL, oil and gas production in the quarter stood at 1.75 mmt (down 2 per cent Q-o-Q) and 0.7 bcm (down 13 per cent Q-o-Q)

High valuation caps Nykaa's upside despite strong Q1 and margin gains

Nykaa posts 23% revenue growth and margin expansion, but lofty valuations may limit further stock gains

Buy-on-dips a better strategy as Cummins' strong prospects seem priced in

Cummins India Q1 profit rose on Powergen and exports growth, with analysts bullish on long-term prospects but cautioning that current valuations reflect the optimism

Voltas pins recovery hopes on festive demand after Q1 revenue slump

Voltas Q1 revenue fell 20% on unseasonal rains and weaker AC sales, with margins hit; management expects festive season and "second summer" demand to aid recovery

Analysts see further gains in LIC post strong Q1FY26 performance

The VNB margin improved Y-o-Y to 15.4 per cent (13.9 per cent in Q1FY25). The Solvency Ratio improved to 217 per cent in Q1FY26 from 199 per cent in Q1FY25

Q1 disappointing, but BHEL's prospects likely to improve from Q3FY26

The performance was due to poor execution and on account of legacy fixed-price contracts in the power segment (where legacy contracts amount to 71 per cent of power segment revenues)

Robust prospects for Siemens Energy, but high valuations may disappoint

Revenue was at ₹1,780 crore, with earnings before interest, taxes, depreciation, and amortisation (Ebitda) at ₹340 crore and adjusted PAT of ₹260 crore for Q3FY25

Despite near-term concerns, analysts upbeat on ABB India's stock

ABB India's Q2CY25 (the company has a December year ending) results disappointed with order inflows down 12 per cent year-on-year (Y-o-Y)

Sustaining cigarette volumes, FMCG recovery key monitorables for ITC stock

The disappointing FMCG performance could see recovery on better consumption since ITC has historically enjoyed industry-leading growth in several FMCG category drivers